Peter Pokorny’s Post

While shopping the specials at both Woolworths and Coles can save you money, the question remains: what is the real price of our groceries? Both retailers offer alternating weekly specials, making it beneficial to compare and shop accordingly. In the competitive landscape of Australian supermarkets, IGA has struggled due to a top-heavy business model and the cost of supporting poor operators. However, some independent stores have managed to compete effectively with Woolworths and Coles by excelling in product sourcing—buying right to sell right. Aldi, on the other hand, operates with low overheads, a limited range, and no-frills service, which allows them to offer lower prices. Unlike Woolworths and Coles, which are driven by shareholder returns, Aldi’s profits go back overseas, impacting the local economy. In summary, while the major players each have their strategies, independent operators who focus on smart buying can still compete successfully in this challenging market.

Aldi is "25 per cent cheaper than the two supermarket giants, with Woolworths only slightly edging Coles out." This is the outcome of the "first government-funded quarterly supermarket report. Consumer group CHOICE sent mystery shoppers to 81 supermarkets to compare prices and Aldi was the "clear leader on value for money" with a $51.51 basket." "The two big hitters dominate Australia's grocery market with a collective 65 per cent share. And surprisingly, despite delivering consistently lower prices, Aldi has still only managed to corner 10 per cent." "“Grocery prices at Coles and Woolworths are very closely matched, with only 75 cents separating the prices of our basket of 14 items without specials," CHOICE CEO Ashley de Silva said. In essence, a lack of competition. Neither of the big players really pushes the envelope in pricing." Go hard Aldi - Australia needs you. https://lnkd.in/gGxEgnam?

Latest Choice survey of grocery prices provides no surprises with Aldi being highlighted once again as Australia's cheapest grocer. However, concern is the gap between the two majors and the IGA independent network. Even allowing for some inaccuracies in the Choice price checks, a price gap greater than 10% for a basket of 14 items between the two majors and IGA (in a value driven market) must be a concerning issue for the store owners and the powers to be at Metcash. Australians deserve a strong independent retail grocery network! Some of the most innovative customer focused stores in our marketplace are the independently owned stores. Time for a strategic review on competitiveness? Can Independents stake a more competitive position around Fresh Foods? #Retail #AustralianSupermarkets #ValueDrivenShopper #IndependentNetwork #PriceCompetitve?" #Reviewpositioning

Aldi stores help keep prices down at Coles, Woolworths Shoppers have been able to slash their grocery bills by a quarter by ditching the major supermarkets, a report has found, but those in Tasmania and the Northern Territory will miss out on the chance. Research from consumer group Choice found that Aldi had the lowest prices of the major supermarkets for a basket of average goods. An average basket of 14 common household items from Aldi cost $51.51 compared to $68.58 at Woolworths and $69.33 at Coles. Which supermarket has the cheapest groceries? We investigate prices at Coles, Woolworths, Aldi and IGA to see which chain offers the biggest savings: https://t.co/KiBwP3UtbQ pic.twitter.com/q3y8cZCKDy — CHOICE (@choiceaustralia) June 20, 2024 The report said the lack of Aldi stores in Tasmania and the NT contributed to higher average grocery prices in those jurisdictions. Shoppers in Tasmania paid $68.90 on average for the basket of goods, while those in the NT paid $68.82. On https://lnkd.in/gVk5pDkY

Clubcard And Nectar Prices Fail To Beat The Discounters Aldi and Lidl remained the UK’s cheapest grocery retailers in September, even when loyalty promotions at the traditional supermarkets are taken into account. In its monthly analysis, consumer watchdog Which? compared how much the UK’s leading chains charged for a selection of 59 everyday products, including branded and own-label items. It found the total cost was £102.68 at Aldi – around 10% less than at Tesco and Sainsbury’s, even when Clubcard and Nectar offers were included. An equivalent shop at Lidl cost £1.18 more than at Aldi. Meanwhile, Asda was also cheaper than Tesco or Sainsbury’s, despite not offering member-only discounts. The findings come just days after Aldi capitalised on the revelation that dozens of Tesco products price-matched to the discounter were not like-for-like. Aldi UK Managing Director of buying Julie Ashfield commented: “Shoppers are already thinking ahead to Christmas and how they can afford a great festive season without breaking the bank. It’s reassuring that switching to Aldi will help shoppers save for the big day. “We have always said that other supermarkets can try to match us on quality or price, but never both. The Which? results confirm the only place shoppers can get Aldi prices and high quality products is at Aldi.” NamNews Implications: * All retailers will appreciate that a 10% discount vs Tesco… * …and a 20% discount vs Waitrose… * …have to make a difference to cautious/cash-strapped and even savvy consumer-shoppers. * Raising the question of how far prices have to drop… * …in order to neutralise discounter-pull. * (and who will have the courage to try?) #Discounters #PriceMatch

The ACCC has published its interim report for its inquiry into supermarkets, outlining what it has heard at the halfway point of the year-long inquiry. This follows the ACCC announcing last week that it would sue Coles and Woolworths for allegedly misleading consumers through discount pricing claims on hundreds of common supermarket products. The interim report includes detailed information gathered through stakeholder submissions, responses to the ACCC’s consumer survey, and feedback provided by suppliers at roundtable discussions held around rural and regional Australia. According to the ACCC, supermarket retailing in Australia is an oligopoly, with Woolworths and Coles accounting for 67% of supermarket retail sales nationally. ALDI accounts for 9% and Metcash supplied independent supermarkets 7%. https://lnkd.in/gXbFkUg9

Consumer group CHOICE has released its first quarterly, government-funded report on supermarket prices across Australia. The research reveals that ALDI has the cheapest groceries nationwide, with a comparable basket from the retailer about 25 per cent cheaper than at Coles or Woolworths. As part of the research, CHOICE sent mystery shoppers to 81 regional and metropolitan supermarkets across the country, including ALDI, Woolworths, and Coles, to record prices for 14 common grocery items. In addition to determining the retailer with the cheapest prices, the research also found where people live can make a difference when it comes to the cost of groceries. CHOICE https://lnkd.in/gBakiQZS

(AUSTRALIA 27.09.24) ACCC report finds Australians have lost trust in supermarkets as it focuses on Coles and Woolworths' market power and barriers to entry [AG: It’s Time for Australia to Invite Overseas Discount Supermarket Chains!] A recent report from the Australian Competition and Consumer Commission (ACCC) reveals a decline in consumer trust towards supermarkets, particularly Coles and Woolworths. Many Australians expressed concerns about misleading pricing claims and higher costs, with a majority feeling skeptical of loyalty programs. The report also highlights the dominance of Coles and Woolworths, which control 67% of the market and own significant undeveloped supermarket sites, potentially limiting competition. The ACCC will continue to investigate these issues, focusing on supermarket market power and barriers to entry, with a final report due in February 2025. ----- [AG: The recent ACCC report highlights growing consumer frustration with supermarket giants Coles and Woolworths, as many Australians feel the pinch from high grocery prices. With these two chains controlling 67% of the market, and the cost of a standard grocery basket rising by more than 20% in the last five years, it’s high time we look beyond local options and actively invite international discounter supermarkets to set up shop in Australia. Supermarket chains like Aldi have shown that competition works. Aldi took two decades to capture a 9% market share, yet consumers still benefit from lower prices. Overseas discount chains like Lidl and Trader Joe’s have succeeded in Europe and the US by offering competitive pricing and greater variety, forcing larger retailers to rethink their strategies. Bringing in more overseas discounters could shake up Australia's retail landscape, providing much-needed relief for consumers facing rising costs. It’s not just about price. Fresh competition drives innovation, better service, and improved consumer choice. But for this to happen, the government must play a proactive role. Reducing barriers to entry and creating an attractive business environment for global retailers is key to ensuring that Australian consumers aren’t left paying too much for everyday essentials. Australia has waited long enough. It’s time to open the doors and let fresh competition bring balance to our supermarket industry.] ----- https://lnkd.in/gmdkmqhB

🇦🇺 Paying 25% less for groceries at Aldi compared with Coles and Woolworths Discount Retail Chain Aldi Australia is shaving nearly $15 off Australians' grocery bills when compared with the same items sold at Coles and Woolworths, where the difference in prices is just 75 cents, according to a new report by Choice. Read more: https://lnkd.in/emnVcz44 #smartdiscount #australia #aldi #coles #woolworths #prices #grocery #bills #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Shoppers travel for grocery deals High food prices are paying off for one grocery chain. "No-frills" German supermarket Aldi is seeing more shoppers turn to its 2,400 U.S. locations in search of deals, The Wall Street Journal reports. Because Aldi stores are smaller than many American supermarkets, with fewer employees and cheaper rent, the chain can offer deeper discounts — $1.50 for a bottle of its own barbecue sauce, for example, versus $3 for Sweet Baby Ray's. Foot traffic at Aldi stores in March rose 26% over a year earlier; at rival Trader Joe's, that figure was 15%, per analytics company Placer.ai. Shoppers are also visiting more grocery stores in order to find the best deals, the Journal reports; some are even traveling to cheaper ZIP codes. They're making 8% more trips than they did last year, and buying fewer items at each store, according to consulting firm AlixPartners. #foodprices #bargains #groceryshopping